DAVID Cameron was last night branded a hypocrite for condemning comic Jimmy Carr’s tax avoidance as “morally wrong” – while his inner circle are involved in similar “dodges”.

DAVID Cameron was last night branded a hypocrite for condemning comic Jimmy Carr's tax avoidance as morally wrong while his inner circle are involved in similar dodges.

Super-rich Tory backers Lord Ashcroft and David Rowland avoided paying tax in Britain but the Prime Minister still handed them prestigious jobs.

His father-in-law Viscount Astor holds property in an offshore company, George Osborne has a family trust and Andrew Mitchell invested in a tax haven.

They deny tax avoidance but Labour's John Mann said: "Are these people morally wrong too?"

Schemes which allow the rich to avoid taxes mean the UK misses out on £4.5billion a year.

And hard-up families being stripped of their child benefit will be furious that Cameron's rich pals are allowed to get away with paying just one per cent tax while doctors, nurses and police face the axe.

The cash could be used to build nine hospitals like the Queen Elizabeth in Birmingham or up to 100 schools.

It would allow Chancellor George Osborne to scrap his hated granny tax raid on pensioners, with £1billion left over.

And if the money went to the Treasury instead of offshore accounts it would save the jobs of 12,000 soldiers.

Cameron last night faced calls to close the loophole that allows people to funnel their pay through schemes such as the Jersey-based K2 system Carr used.

The comedian yesterday issued a grovelling apology for his terrible error of judgment. The PM branded the scheme morally wrong. But critics turned on him after learning his stockbroker dad Ian used tax havens in Panama City and Geneva to build up the family fortune.

And his father-in-law Viscount Astor has a home on the Scottish island of Jura, a favourite holiday spot for the Camerons, which is owned by a company registered in the Bahamas.

Millionaire Cabinet colleagues including Andrew Mitchell, Philip Hammond, Jeremy Hunt and Osborne, who has a £4million trust fund, have also found themselves accused of avoiding tax.

The PM refuse to be drawn on his own family's tax affairs.

But Labour's John Mann said: "This is hypocrisy pure and simple.

"What is good enough for Jimmy Carr is good enough for his advisers, his donors and his family. We look forward to seeing him act consistently.

"Cameron is going to have some difficult silences when he has the in-laws for dinner."

And Shadow Commons Leader Angela Eagle demanded to know why the PM singled out Carr but made no mention of Tory supporter Gary Barlow and his Take That band mates who plough £26million into Icebreaker investment schemes which also cut tax.

She said: "Oddly, (Cameron) did not take the opportunity to condemn as morally repugnant the tax avoidance scheme used by Conservative supporter Gary Barlow, who has given a whole new meaning to the phrase Take That.

"If he is also morally repugnant, why has he been given an OBE?"

Osborne was last night accused of spouting hot air over bold tax avoidance plans he promised have come to nothing.

The Chancellor vowed to stop people dodging stamp duty by buying property through offshore firms. But critics said the hypocrisy over the Carr issue proves the Government are showing little interest in hammering the super-rich.

Shadow Treasury minister Chris Leslie added: "Everyday we are hearing more examples of new dodges and scams.

"Ordinary people are having their child benefit cut and have had VAT hiked while wages stay flat and these schemes let the rich get richer.

"We have heard a lot of talk from George Osborne but the Government need to take this more seriously and get on and act."

Lib Dem peer Lord Oakeshott said: "When you lift the stone on tax-dodging by Britains rich and famous it's nauseating to see what crawls out. George Osborne was right to call aggressive tax avoidance morally repugnant.

"So what are he and David Cameron going to do about it apart from selective condemnation of comedians who aren't Tory donors?"

Ex-Tory treasurer Lord Ashcroft, the party's biggest donor, spent years as a non-dom who escaped paying full tax on his overseas business empire before surrendering the status to remain a peer.

Cameron offered the Treasury post to financier David Rowland even though he had lived abroad as a tax exile.

And the PM appointed billionaire Sir Philip Green (right) as a Government adviser despite complicated tax arrangements which mean his High Street retail empire is owned by his Monaco-based wife.

Cameron had attacked Carr's tax scheme during a trip to Mexico. He said: "It is not fair on hardworking people who pay their taxes to see these scams."

But when asked yesterday about Barlow's situation, he pledged to look into the case, then brushed off the question.

He said: "I am not going to give a running commentary on different people's tax affairs. I dont think that would be right.

"I made an exception yesterday because it was a very specific case where the details seemed to have been published and it was a particularly egregious example of an avoidance scheme that seemed to me to be wrong and I made that point."

Carr issued a statement declaring he would no longer be paying into the K2 scheme.

He said: "I met with a financial advisor and he said to me, 'Do you want to pay less tax? It's totally legal.' I said 'Yes.' I now realise I've made a terrible error of judgment."

Although I've been advised the K2 tax scheme is entirely legal, and has been fully disclosed to HMRC, I'm no longer involved in it. Apologies to everyone.

Lord Astor, who is Samantha Cameron's step-dad, insisted last night he pays the correct amount of tax.

He said: "My answer is very clear. We pay full taxes. No more to say."

But the PM faces cross-party calls to make the peer bring the Scottish property onshore.

Lib Dem peer Lord Oakeshott said: "Cameron should book a supper with Lord Astor to persuade him to bring his estate back now from the Bahamas."

The PM's spokeswoman insisted he knew nothing about the Scottish estate's ownership or any details of his father-in-law's tax affairs.

Insiders believe the PM's attack on Carr has opened up the tax affairs of those around him to scrutiny in a move that could backfire as badly as John Major's Back to Basics moral crusade.

Aides claim he believes all "aggressive tax avoidance" was wrong but could not explain where he drew the line.

Next page: Jimmy Carr takes a hammering on TV show

Jimmy Carr was last night humiliated by rival comics while filming Channel 4 comedy 8 Out Of 10 Cats.

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